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GDN FUNDED PAPERS
Regional Impacts of the Global Economic Slowdown in Trade Flows: the case of Brazilian states
Project : Awards and Medals Competition (AMC)
Author : Gilberto Libanio
Date : 2009
Description : The main goal of this paper is to investigate the impacts of the 2008 international financial crisis on Brazil, from a regional perspective. The main question to be addressed is: how do the effects of the economic crisis differ across regions in Brazil, and how can we explain such different impacts, based on the patterns of specialization and on the export profile of Brazilian states. In other words, this study examines to what extent the economy of the various states in Brazil has been influenced by the significant growth of international trade during the 2000s and its subsequent decline following the international financial crisis. Following Kaldor, Thirlwall and others, the main hypothesis of the study is that the impacts vary according to the pattern of trade specialization of the different states. In order to address this issue, the export profile of the states will be analyzed, and exports will be classified according to technological content, following the 5-group classification proposed by Lall (2000). Based on this classification, we’ll build indexes of export quality for every state in Brazil. Finally, the paper investigates the correlation between these coefficients and the economic growth rates for the period 1996-2009.
Globalization and growth in the low income African countries with the extreme bounds analysisa
Project : Awards and Medals Competition (AMC)
Author : Krishna Chaitanya Vadlamannati and B. Bhaskara Rao
Date : 2009
Description : The relationship between globalization and economic growth, especially in the poorer developing countries, is controversial. Previous studies have used single globalization indicators such as the ratio of exports plus imports to GDP. This paper uses a comprehensive measure of a globalization of Dreher (2006), which is based on measures of globalization of the economic, social and political sectors. Panel data estimates with data of 21 low income African countries show a small but significant positive permanent growth effects. The sensitivity of this growth effect is examined with the extreme bounds analysis (EBA). Contrary to the findings by Levine and Renelt (1992) that cross-country growth relationships are fragile, the effects of globalization and some other determinants of the long run growth rate are found to be robust by EBA.
Remittances, Public Health Spending and Foreign Aid in the Access to Health Care Services in Developing Countries
Project : Awards and Medals Competition (AMC)
Author : Christian Hubert Ebeke and Alassane Drabo
Date : 2009
Description : The aim of this paper is to analyze the respective impacts of remittances, health aid and public spending on the access to health care services in developing countries. The specific objectives are threefold. Firstly, we quantify the differential impacts of remittances on the access to public and private health care services. Secondly, we determine whether remittances and foreign health aid are complements or substitutes in the access to health care services. Lastly, we evaluate the heterogeneity of the impact of remittances in the access to public and private health care services by quintile of income. We provide a rigorous econometric analysis by controlling for the endogeneity of remittances, public spending and foreign aid. We find that remittances, health aid and public spending are important determinants of access to health services in recipients’ countries. Another interesting result comes from the fact that, remittances lead to a sectorial glide in the uses of health care services from the public to the private sector for the intermediate income class. This result holds also for the richer quintiles that are the major recipients of remittances in developing countries. Moreover, remittances and foreign health aid are complements for the access to health care services in “low” income countries. Finally, these results suggest that policies aiming at increasing remittances are appropriate for developing countries but also that, the “optimal” therapy for the “low” income countries is the combination of remittances and foreign aid.
Impact of International Migration and Remittances on Child Schooling and Child Work: The Case of Egypt
Project : Awards and Medals Competition (AMC)
Author : Asmaa Elbadawy and Rania Aly Roushdy
Date : 2009
Description : In this paper, we examine the impact of international migration and remittances on children’s schooling and work in Egypt. Migration and remittances are an essential element of the Egyptian economy. Temporary international migration, especially to oil-rich Arab countries, has been used by many Egyptians as a survival and income-augmentation strategy. The number of Egyptian international migrants is estimated at 4% of the Egyptian population and 1.5% of world migrants (Nassar 2005). We examine the effects of migration, remittance-receipt, and remittances level on a multitude of education and child work indicators for boys and girls. We mainly focus on schoolaged children 6-17.
The Impact of Real Exchange Rate Flexibility on East Asian Exports
Project : Awards and Medals Competition (AMC)
Author : Md. Mizanur Rahman
Date : 2009
Description : The East Asian production networks is a phenomenon whereby production processes are fragmented across national borders in the region. This development is undeniably related to the global imbalance problem, particularly a rising current account deficit in the United States. A growing consensus is that the imbalance is unsustainable and requires an orderly adjustment of East Asian exchange rates. The present study shows that an appreciation of all East Asian exchange rates, if generalised and coordinated, would be virtuous and significantly correct the payment imbalance. Otherwise, the effect would be heterogeneous, causing a significant decline in East Asian exports regardless of how individual countries conduct their exchange rate policies. The findings further imply that a regional currency basket mechanism has the potential to both enhance intraregional exchange rate stability and engineer a collective exchange rate adjustment for resolving global imbalances against East Asia.
Regional Openness, Income Growth and Disparity across Major Indian States during 1980-2004
Project : Awards and Medals Competition (AMC)
Author : Dibyendu Maiti and Sugata Marjit
Date : 2009
Description : As a country progressively engages in international trade, its factors of production will enter increasingly into the export sector, where their return is higher, compared to the import competing sector. At the regional level too those states, which can attune their production structure to international demands, earn higher than other states and grow at a faster rate. Further if the newly-industrial states concentrate more on those sectors, a trend of regional convergence will be discernible. We developed a theoretical framework to motivate our empirical analysis. Then, the regional openness index has been reconstructed by using two alternative weighting techniques to combine the export and import intensities, ranks of correlation of state production shares, respectively with national export and import shares of the states. The per capita net state domestic products have grown in all major states in India during 1980-2004 but at different rates resulting to the rise of regional disparity and the regional openness have been detrimental for this. The state, which moved away from importable production to exportable production, grew faster than the rate of others at least by 1-1.5% per annum. Definitely, a few newly-industrial states showed an increasing dependence on exportable production, but not all. Moreover, some of the industrially developed states (in terms of exportable share) has been observed yet to continue with importable production to a large extent.
Trade reforms and market selection: evidence from manufacturing plants in Colombia
Project : Awards and Medals Competition (AMC)
Author : Marcela Eslava, John Haltiwanger, Adriana Kugler and Maurice Kugler
Date : 2009
Description : We use plant output and input prices to decompose the pro…t margin into four parts: productivity, demand shocks, mark-ups and input costs. We …found that each of these market fundamentals are important in explaining plant exit. We then use variation across sectors in tari¤ changes after the Colombian trade reform to assess whether the impact of market fundamentals on plant exit changed with increased international competition. We …nd that greater international competition magni…fies the impact of productivity, and other market fundamentals, on plant exit. A dynamic simulation that compares the distribution of productivity with and without the trade reform shows that improvements in market selection from trade reform help to weed out the least productive plants and increase average productivity. In addition, we …nd that trade liberalization increases productivity of incumbent plants and improves the allocation of activity within industries.
Social Security Health Insurance for the Informal Sector in Nicaragua: A Randomized Evaluation
Project :
Author : Rebecca Thornton; Laurel Hatt; Mursaleena Islam; Erica Field; Freddy Solís; Martha Azuzena González Moncada
Date : March 2009
Description : This paper evaluates a program that randomized incentives to obtain health insurance among informal sector workers in Managua, Nicaragua. In January 2007, the government of Nicaragua extended a health insurance program to informal sector workers using microfinance institutions. We randomly varied the costs of enrolling as well as randomly assigned different affiliation locations to sign up for the insurance: either at the central Social Security (INSS) office, or the participating microfinance institutions. Costs were crucial to signing up for health insurance – both monetary costs (subsidies) as well as convenience costs associated with enrollment. Approximately one year after being offered the insurance, insured individuals switched from using services at private and Ministry of Health facilities to visiting covered health facilities contracted by INSS. Total out-of-pocket expenditures were reduced among insured individuals, but the average out-of-pocket savings were lower than the equivalent unsubsidized insurance premiums. We also found very low retention rates after expiration of the subsidy, with less than 10 percent still enrolled in the insurance program after one year. In addition to the quantitative results, we present qualitative evidence that institutional and contextual factors are essential for understanding the results and limitations of this program and are important to consider for other similar insurance programs. *Funding for this study was provided by USAID’s Private Sector Partnerships-One (PSP-One) project and the Global Development Network (GDN). The authors’ views expressed here do not necessarily reflect the views of the United States Agency for International Development or the United States Government. The evaluation was coordinated for GDN by EA Consultants. The evaluation team would like to acknowledge the extensive contributions of the field team at ALVA Consultores including Dr. Ana del Carmen Rojas and Ms. Rosario Duarte, as well as the project coordination and support of Barbara Magnoni, EA Consultants, and the contributions in the project design of Tania Dmytraczenko, the World Bank. We are grateful for helpful comments and suggestions from Robert Lalonde, Jeff Smith, and other GDN mentors and participants as well as participants at Harvard School of Public Health, the World Bank Research Group, the Population Association of Iran, and the Population Association of America seminars. We also thank research assistance from Anne Fitzpatrick.
Impact of Performance Based Financing in Rwanda: Health facility level analysis.
Project :
Author : Paulin Basinga ; Paul J. Gertler; Agnes Binagwaho; Agnes L.B. Soucat; Jennifer R. Sturdy; Christel M.J. Vermeersch
Date : October 2009
Description : Rwanda is a small, landlocked country in Sub-Saharan Africa with a population of approximately 9 million and a per capita GDP of approximately US$250. Population density is very high with over 345 inhabitants per square kilometer 1. The 1994 genocide decimated Rwanda’s fragile economic base, destroyed a large share of the country’s human capital, and eroded the country’s ability to attract private sector investment. Close to one million people died and a large number of people became refugees. Following the genocide, poverty dramatically increased—particularly among women—reaching 78% of the population in 1994 2. In the health sector, the genocide destroyed Rwanda’s heath infrastructure. By 2005, the county was in a health crisis for lack of critical human resources, with only 1 doctor for every 50,000 inhabitants and 1 nurse for every 3,900 inhabitants 1. The crisis also impacted the quantity of health care workers available, where a huge disparity exists between urban and rural Rwanda, but the country has made a remarkable transition from reconstruction to development over the past fifteen years. During reconstruction, the Government of Rwanda focused on rebuilding institutions, which led to significant improvements in economic outcomes and social indicators. Rwanda has also made substantial progress toward the Millennium Development Goal (MDG) targets. Impressive results have been achieved in the social sectors: primary school enrollment reached 92 % in 2006 and completion rates increased to 55 percent in 2005. HIV prevalence is at 3% and is decreasing 3 . Rwanda does have a good record on childhood vaccination. Only 3% of children receive no vaccines, yet 25% of children ages 12-23 months are not fully vaccinated. There is a 10% dropout rate for DPT and 13% for polio vaccination 4. Infant mortality has declined since 1980, but the 1994 genocide and its aftermath complicated the situation. Infant mortality rate increased from 85 deaths per 1,000 live births in 1992 to 107 deaths per 1,000 live births in 2000. Between 2000 and 2005, many proven and effective interventions to decrease infant mortality have been implemented in Rwanda, and by 2005, the situation has improved. The infant mortality rate dropped to 86 deaths per 1,000 live births. Before 1990, the maternal mortality ratio was declining (from 611 deaths per 100,000 live births to 500 in 1992) in response to the full implementation of primary health care in Rwanda 5. Maternal mortality has declined since the 1994 genocide. However, the level of maternal mortality is still high compared to other developing countries. Between 1995 and 2000, there were approximately 1,071 maternal deaths per 100,000 live births 6. Current estimates indicate that between 2000 and 2005 the maternal mortality rate in Rwanda was 750 per 100,000 live births (DHS unadjusted ratio). The ratio has dropped substantially compared with the 2000. Most maternal deaths occur during child birth, and there is substantial evidence to suggest that if delivery is assisted by a trained health attendant, the impact on maternal health is improved significantly
Impact Evaluation of India’s ‘Yeshasvini’ Community Based Health Insurance Programme
Project :
Author : Aradhna Aggarwal
Date : May 2009
Description : Using propensity score matching techniques, the study evaluates the impact of India’s Yeshasvini community based health insurance programme on utilisation of health care, the intensity of use, financial protection, treatment outcomes and economic well being. The programme offers free OPD and lab tests at discounted rates when ill but, more importantly, it covers highly catastrophic and less discretionary impatient surgical procedures. It is therefore expected to have both price reduction and income transfer effects on health care use. For evaluation, a total number of randomly selected 4109 households in villages in rural Karnataka, an Indian State, were interviewed using a structured questionnaire. A comprehensive set of indicators was developed and by means of particular tests and other procedures, the quality of results was tested. Generally, the programme is found to have increased the use and intensity of health care utilization, reduced out-of-pocket spending, ensured better health and economic outcomes. However, the effects are more pronounced on those health services that are directly covered under the programme. Effects remain small for other services. Thus the effects of insurance operate through a reduction in the price of health care; income transfer/ secondary effects remain insignificant. Furthermore, the impact varies across socio economic groups. The paper demonstrates that community insurance presents a workable model for providing high end services in resource-poor settings through an emphasis on accountability and local management. Key words: Community based health insurance, impact evaluation, India, Karnataka, state, This study was funded by the ‘Bill & Melinda Gates Foundation’. I would like to thank the Global Development Network (GDN) for giving me an opportunity to carry out this study. I am indebted to Prof. Robert LaLonde, Dr. Lyn Squire, other experts and colleagues for their useful comments and suggestions in research workshops organised by GDN, periodically. I especially want to thank Mr. Ravi Kumar, Mr. S.R.Naik and various Departments of the State Government of Karnataka for providing relevant data and information. Impact Evaluation of Yeshasvini Community Health Insurance Programme
 
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